MADISON, Wis. — Members who keep the change may soon be seeking out their local credit union branch.
A new CUNA/De La Rue Cash System white paper, The New Marketing Launching Pad: QuickChange Member Self-Service Coin Counting, finds that credit unions can improve members' experience and market their products in an innovative new way by incorporating self-service coin counting machines into their branches.
According to the white paper, with the spare change found in the couches, cars, junk drawers and piggy banks of American households adding up to some $10.5 billion, there is an opportunity for credit unions to differentiate themselves by offering the service–particularly in areas with high-priced options. The paper finds that only 25% of credit unions offer automated coin counting services and the trend is shifting from offering coin counting services through tellers to self-service coin counters. Members can count their own coins, watch them tally, take their custom receipt to a teller and decide whether to deposit into an account or convert to cash.
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"It is surprising that more credit unions don't take advantage of this convenience service to attract deposits, build member relationships and differentiate their financial institution," said De La Rue Cash Systems Senior Vice President of Marketing John W. Smith. "Clearly the time has come for credit union leaders and marketers to change their attitudes about change."
Smith adds that credit unions should do more to promote the service to members. He says it entices members to visit the branch more often and helps credit unions further demonstrate their valued personal touch while giving staffers the time to get to know and better understand their members' needs.
Clearview Federal Credit Union has recently unveiled its own coin counter at its headquarters in Moon Township, Pa. The self-service coin machine allows Clearview members to place loose change in the tray of the machine, and it automatically counts the coins and provides a receipt of funds. According to Clearview Marketing Manger Lisa Weber, the service is free, quick and easy. "There's a need for such a service here," said Weber. "Especially with grocery stores charging up to 10% for their coin counting service. So far the feedback from employees and members has been that it is wonderful and they appreciate the convenience and savings provided by the new counter." For Raleigh, N.C.-based State Employees Credit Union the coin counters represents yet another opportunity to encourage younger members to save. From October 2005 to July of this year the credit union has been busy installing a FAT CAT-branded De La Rue coin sorter in each of its 202 branch locations. FAT CAT is the credit union's popular youth program that promotes saving. SECU also has two "mobile" coin sorters available for community events, housed at its headquarters. Equipped with English and Spanish language options, the sorters have been a hit, not just with the younger crowd, but with all members as well. "This was something our members had been asking for," said SECU Vice President of Educational Services Leigh Brady. "With area grocery stores charging 7% to 8% for the service we thought we might as well give our members a fee-free option."
Brady says SECU also offers the coin sorters for use by various nonprofit organizations like Meals On Wheels and has helped them save some $3,000 in fees for the $43,000 they've brought in. During a Kids Day event earlier this year to benefit Wake Medical Center, in just four hours the two mobile coin counters took in over $10,000 in change.
"It is a great way to get exposure while reaching out to the community and once you establish a relationship they come back to you for future events," said Brady. "This is something that generates goodwill and members really talk it up to their friends and family."
Brady says ultimately the choice for SECU to offer such a service boiled down to promoting savings to its younger members. To encourage younger members to use the machine the CU keeps a step stool next to its machines and it also plans special events with appearances by its youth program mascot FAT CAT. "We want the kids to have different avenues to save and this makes it so much fun," said Brady. "They love emptying their change, taking the ticket to the teller counter and depositing it in their accounts. This is truly a member service that goes back to our "people helping people" philosophy so it is not something you get into from a profit standpoint."
The free white paper, which also incorporates case studies from four credit unions that were early adopters of this technology including their reasons for offering this service, operational considerations, marketing and cross-selling strategies and fee philosophies, can be downloaded at www.strategicservices.cuna.org –[email protected]
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